Northwest History. State History. Box 37. National Topics.

By thus cutting the content of the I
silver dollar, the treasury also could
hasten the day on which silver would |
be established at the promised 25 per
cent ratio with gold. It would have
to buy very little additional silver to
reach the ratio goal.
The treasury would also then have
a theoretical silver as well as gold
"profit" against which it could issue
$3,500,000,000 to $5,000,000,000 of new
currency. That would be a limited
monetary inflation and a fairly sound
one, because the new money would be
backed by gold and silver, although
at a depreciated value.
) Workings. |
It may sound complicated, but it is
a relatively simple bookkeeping trick.
The government merely increases the
price of its gold and silver monetary
reserves arbitrarily and uses the profit
to issue currency. How much good it
would do is a matter for debate.
The new currency issue probably
would be used to pay off the public
debt. That would be the logical thing
to do. In that case, the money would
only replace existing bonds in banks
and insurance companies now already
overloaded with money. However, it
might create an inflationary psychology and thus stimulate buying.
I
Prospects.
This is just one of the plans being
talked of. In fact, it is the only logical inflationary plan being discussed.
There is no reason to believe it will
be adopted. Instead, there are very
good reasons for believing that the
government has made no definite
monetary plans for more than 30 days
in advance.
It seems to be feeling its way along
cautiously, with no commitments publicly or privately, judiciously delaying
its decision until it sees what the future economic situation will turn out
to be.
Nothing could be done about this
plan anyway until November 9. The
government allowed 90 days for seizure of silver, and the 90-day period
will expire then. Also, the congressional elections and the fall financing
of the treasury will then be completed.
Mark it down in your hat for a check
along about November 15.
[ Hyde Park. [
Mr. Roosevelt has a secret administrative use for his home at Hyde Park.
His associates know he is not going
there merely for a month's vacation.
The inside on that is that, in the
White House,' he lives like General
Johnson in a goldfish bowl. If important people are called in to see him,
every one knows about it immediately.
Hyde Park is a retreat where Roosevelt can run visitors in and out without any one being the> wiser.
■j Notes. j |
Ben Cohen is back from Europe to
write the forthcoming social reform
legislation. The presidential committee will submit ideas and he will assemble them into court-proof legislation. He will not take his pen in
hand until he finds out how the railroad pension court case is decided.
The best government bond authorities swear it was the western banks
which took profits when the market,
went down recently. However, they
are all back in and the market is in
good shape to absorb the September
treasury financing.

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By thus cutting the content of the I
silver dollar, the treasury also could
hasten the day on which silver would |
be established at the promised 25 per
cent ratio with gold. It would have
to buy very little additional silver to
reach the ratio goal.
The treasury would also then have
a theoretical silver as well as gold
"profit" against which it could issue
$3,500,000,000 to $5,000,000,000 of new
currency. That would be a limited
monetary inflation and a fairly sound
one, because the new money would be
backed by gold and silver, although
at a depreciated value.
) Workings. |
It may sound complicated, but it is
a relatively simple bookkeeping trick.
The government merely increases the
price of its gold and silver monetary
reserves arbitrarily and uses the profit
to issue currency. How much good it
would do is a matter for debate.
The new currency issue probably
would be used to pay off the public
debt. That would be the logical thing
to do. In that case, the money would
only replace existing bonds in banks
and insurance companies now already
overloaded with money. However, it
might create an inflationary psychology and thus stimulate buying.
I
Prospects.
This is just one of the plans being
talked of. In fact, it is the only logical inflationary plan being discussed.
There is no reason to believe it will
be adopted. Instead, there are very
good reasons for believing that the
government has made no definite
monetary plans for more than 30 days
in advance.
It seems to be feeling its way along
cautiously, with no commitments publicly or privately, judiciously delaying
its decision until it sees what the future economic situation will turn out
to be.
Nothing could be done about this
plan anyway until November 9. The
government allowed 90 days for seizure of silver, and the 90-day period
will expire then. Also, the congressional elections and the fall financing
of the treasury will then be completed.
Mark it down in your hat for a check
along about November 15.
[ Hyde Park. [
Mr. Roosevelt has a secret administrative use for his home at Hyde Park.
His associates know he is not going
there merely for a month's vacation.
The inside on that is that, in the
White House,' he lives like General
Johnson in a goldfish bowl. If important people are called in to see him,
every one knows about it immediately.
Hyde Park is a retreat where Roosevelt can run visitors in and out without any one being the> wiser.
■j Notes. j |
Ben Cohen is back from Europe to
write the forthcoming social reform
legislation. The presidential committee will submit ideas and he will assemble them into court-proof legislation. He will not take his pen in
hand until he finds out how the railroad pension court case is decided.
The best government bond authorities swear it was the western banks
which took profits when the market,
went down recently. However, they
are all back in and the market is in
good shape to absorb the September
treasury financing.